Swiss Forbo Group with less sales but higher net income

Swiss Forbo Group with less sales and net operating income

2012 has been a challenging year for Swiss Forbo Group (Flooring and Movement Systems), mostly because the public spending in Europe diminished and costs-cutting measures are in place in the Euro Zone. Particularly affected were Flooring Systems

The Forbo Flooring Systems division reports 2012 sales of CHF 873.9 million (CHF 886.5 million) or 1.4 % less than 2011. The positive currency effects amount to 0.3 % and the result is a decrease of 1.7 % in local currencies. The division has a share of 72.8 % of group sales. EBIT increased by 17.7 % to CHF 149 million and EBIT margin was up 17.0 %, excluding special items there was a diminution of both EBIT by 18.2 % and EBIT margin to 11.8 %.

Movement Systems shows sales of CHF 327.2 million (CHF317.3 million) or a gain of 3.1 % and a slight increase in currencies of 0.5 %. The division’s share of group sales amounts to 27.2 %. Because of accelerated expansion in growth markets, operating profit (EBIT) declined by 16.2 % to CHF 27.0 million (CHF 32.2 million) and despite of the gain in sales. Thus, EBIT margin decreased from 10.1 % to 8.2 %. Net income from both operations dropped 21.7 % or from CHF 115.0 million to CHF 90.1 million, whereas group profit increased by 34.6 % or from CHF 146.5 million to CHF 197.2 million thanks to extraordinary financial income of CHF 22,4 million after tax from the sale of its Rieter (Spinning Systems) shares.

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